Arizona Electricity Price Increases

Goals

To understand electricity price increases over the years by electric companies in Arizona in order to facilitate a pitch that solar power is cheaper in the long term.

Early Findings

  • APS increased the electricity rate of some residents of Arizona by as much as 55% to 88% within one year, even though energy use increase was only 7%.
  • There was also a report in 2018 that APS price hike was three times more than what customers were told.
  • Energy prices have increased by an average of 4% annually in the last 10 years in the US.
  • The average monthly electricity bill in the US is $110 and it is expected to reach $180 in the next 20 years.
  • Average electricity prices in Arizona has increased dramatically between 2008 and 2018, compared to the national average.
  • Electricity prices increased by almost 30% between 2008 and 2018 in Arizona, one of the highest in the US.
  • The electricity price increase in Arizona between 2013 and 2018 is about 15%.
  • Electrical District 3 decreased electricity rates by 5.16% between 2015 and 2016 and decreased the rate further by 3.16% between 2016 and 2017.
  • SRP decreased electricity rates in 2019 by between $1 and $4.
  • TEP increased electricity bill by an average of $7.16 between 2018 and 2019.
  • However, TEP states that over the last 20 years, they have only increased residential electric rates by an average of about 1% per year.

Proposed next steps:

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Based on the availability of data, we propose continuing this research by dedicating additional research into the average year to year electricity price increase for APS, ED3, SRP, and TEP over the last 10-20 years. We will provide data for either the last 5, 10, 15, or 20 years as available. We will also highlight steep/extreme increases in any time period (year(s) or months) we come across during our research.